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USERS of the payment service Venmo have been warned of how scammers are targeting accounts with a new trick.
Michigan’s Attorney General Dana Nessel has issued an alert to users of the app as “accidental” money transfers are draining bank accounts.
Users of Venmo and other peer-to-peer banking apps have been warned about a new scam[/caption]
Potential victims receive a message of an accidental transaction that they are asked to send back[/caption]
It comes after Venmo customers across the nation reported a scam where they were “accidentally” sent money by fraudsters and then asked to send it back.
Nessel has instructed users to never send the money back.
Instead, anyone who receives such messages should directly contact Venmo or the P2P service they use about the issue.
Often what happens is that the money initially sent by the scammer is from a stolen credit card number.
The cardholder of that compromised card may then report this as fraudulent and get the payment reversed.
However, the innocent person who returned the accidental transaction will then have a withdrawal from the company of the stolen credit card, and any transferred funds will also come out.
“Scammers are constantly evolving their tactics to exploit consumers,” the attorney general said.
“Remember, it’s always best to use an extra degree of caution with any transaction involving someone you do not know.
“If you believe you have been a victim of a scam, please do not hesitate to reach out to my department.”
Scammers are increasingly using peer-to-peer (P2P) banking apps as consumers hugely rely on them for transactions between family and friends.
In 2023, reported P2P app scams saw an average loss of around $200, according to the Better Business Bureau (BBB).
‘EASY-TRICK’
Mobile app users are advised by the BBB to not take action without verifying who is behind the unknown account.
“Make sure you know who is sending you money,” Melanie McGovern from the BBB told Fox News affiliate WJBK.
“If it’s someone who you’re unfamiliar with, don’t do anything.”
Instead, it is better to report the error to the app, she said as users fall foul to the “easy trick” scammers now use.
Those who believe they have been a victim of a P2P scam can file a complaint with the Federal Trade Commission, their attorney general, and the BBB.
Bank tips for avoiding scams
As scams become more sophisticated with the use of artificial intelligence, it is important you know how to spot a scam:
- Be skeptical of online deals that seem too good to be true, especially on social media.
- Scammers will often use tactics to make you panicked so you make quick decisions – be cautious if you are told to take immediate action and verify who has contacted you.
- Chase Bank warns customers to “never return any unexpected funds without calling Chase first.”
- Never send money to someone you have only spoken to online or by phone as this is likely a romance scam.
- Unless you 100% know who you are talking to, never give someone remote access to your device.
- Never accept help from strangers at an ATM and always be vigilant when making withdrawals.
- Do not send money or click any links indicating that you have won a prize.
Source: Chase.com
Meanwhile, Dollar General shoppers have been warned about a device found at self-checkouts that drain bank accounts.
Police from St Mary’s, Maryland, are urging customers of the local Dollar General to check their bank accounts after a card skimmer was found.
These devices often look identical to normal chip and pin machines and they lot on top of them and clone card information when shoppers make a purchase.
A store associate at the supermarket located two hours south of Baltimore found one that looked like the keypad used to enter PINs.
Shoppers who made self-checkout purchases between May 24 and May 26 have been identified as potential victims and should call the Sheriff’s Office.
